Travers Smith LLP has advised Auto Trader Group plc ('Auto Trader'), the UK's largest automotive marketplace, on its acquisition of Autorama (UK) Limited ('Autorama'), one of the UK's largest transactional marketplaces for leasing new vehicles.
Autorama, under its Vanarama brand, has created a leading end-to-end digital platform, which aggregates leasing deals from multiple funders and OEMs, enabling buyers to transact online across a wide range of vehicles. The acquisition will transform Auto Trader's existing leasing proposition and help to meet the demands of the growing number of consumers who might consider leasing their next new vehicle. The acquisition will allow Auto Trader to capitalise on a large structural opportunity for a new car leasing marketplace which is driven by the growth of electric cars, new manufacturers, lower take up of company car schemes and a shift towards digital distribution.
The transaction involved an initial consideration of £150 million, with a further £50 million of deferred consideration to be settled in shares. Completion of the transaction is subject to regulatory clearances.
The Travers Smith team was led by Head of Corporate M&A and ECM Andrew Gillen, supported by Senior Associate Hugh Hutchison and Associate China Waters. The team was also supported by members from the tax, commercial, competition, employment, property, finance, pensions and incentives teams.
Travers Smith has previously advised Auto Trader on the acquisition of KeeResources and Blue Owl Network Limited, and its joint venture partnership with Cox Automotive.